About mathematical model of the capacity market

The capacity market in Russia is considered as an optimization model which is aimed at reaching minimum electricity supply costs for consumers. It is shown that the linear model applied to the discrete problem often does not reach optimum solution. The calculation is done for an abstract example and compared with the results of the discrete model. Competitive power output model solves an optimization problem which is, by its nature, discrete. Current model, either before 2015 (completely inelastic fixed demand) or after (demand depending on price), is a variant of linear programming problem, and thus does not always yield a true optimal solution. Substituting it for a discrete programming problem allows us to find better solutions and to lower costs for all involved power stations. Besides, in this framework we can accout for bandwidth limitations without subdividing price zones, which is especially relevant for Russian power systems. Further directions of research are proposed.